Question
Which of the following statement is correct and why? a. The corporate valuation model cannot be used unless a company doesnt pay dividends. b. Free
Which of the following statement is correct and why? a. The corporate valuation model cannot be used unless a company doesnt pay dividends. b. Free cash flows should be discounted at the firms weighted average cost of capital to find the value of its operations. c. Value-based management focuses on sales growth, profitability, capital requirements, the weighted average cost of capital, and the dividend growth rate. d. Two important issues in corporate governance are (1) the rules that cover the boards ability to fire the CEO and (2)the rules that cover the CEOs ability to remove members of the board. e. If a companys expected return on invested capital is less than its cost of equity, then the company must also have a negative market value added (MVA)
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